‘Bitcoin will see its all-time high in the year 2020’, were the words of a renowned crypto bull and the co-founder of Fundstrat Global, Thomas Lee. In a recent interview with CNBC, Lee put forward significant key factors involved in making this prediction. Here are some of the key points to take note of in order to understand the 2020 price prediction.
Bitcoin has been lately showing an increased amount of trading volumes. As per Lee, these trading volumes can be attributed to increased adoption of bitcoin in Turkey and Venezuela, owing to their own native currency troubles. Venezuela carries significant importance here as its traditional fiat system has broken down to the core and people are looking for alternatives in cryptocurrencies. Dash has already gained a stronghold in the country in order to carry out everyday activities. Increased trading specifies that people are now warming up to the idea of decentralized currency in the form of bitcoin thus highlighting increased adoption.
Another important event in the crypto timeline is “bitcoin reward halving”. Since the reward given to miners for solving a complex crypto puzzle and adding a new block to the chain is halved every 4 years to limit the total supply to 21 million, it does effect on the asset’s price too. The next halving is expected to happen in 2020 and if previous data is to be believed, bitcoin’s price spike usually begins a year before the halving. As halving will lessen the supply of bitcoin in circulation, the price is expected to spike up.
Earlier this month, the Bitcoin Misery Index (BMI), which is a Fundstrat’s measure of showing the investor sentiment regarding the asset factoring in price, volatility and trading activity, hit its highest point since mid-2016. This can be taken as a sign that things are warming up for an extensive bull run. Since the start of the month, we have already witnessed bitcoin achieve major gains as it went up to the $5,600+ plus range for some time.
While these are some of the factors hinting an upcoming major bull-run, what do the experts have to say in this scenario? The statement made by one of the world’s biggest names in cybersecurity, John McAfee, stands apart in this context. While Thomas Lee suggests that bitcoin will cross its highest $20,000 mark in 2020, John straight up put forth a number, $1 million. Talking to Anthony Pompliano, the founder of Morgan Creek Digital and a crypto permabull, on his podcast “Off the Chain“, John said:
I don’t care if it’s a penny today, it’s going to be two million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.
He also said:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020”.
While talking to BlockPublisher, André Bruckman, CEO and founder of Mycro, predicted that bitcoin will touch $50,000 by the end of this year:
“The industry is bigger than ever, it is more professional, more serious and the image has improved. The next run will come and this time it will be more intense than ever. BTC represents the whole industry and I am very bullish on it. I think there will be another correction and from there I see $50,000 as possible in 2019”.
Henry Stanley, CEO ICOAxiom, is also bullish about bitcoin’s price spike by the end of 2019:
I believe the bull market has kicked in in the crypto space and the price of bitcoin will finish the year around $10,000.
The rapid pace at which developments in both the technology and legislation associated with bitcoin and the crypto world signifies interesting times to come. As the negative issues like money laundering and use over dark web, linked with cryptos are overcome, it is expected that financial institutions will also step in and play their expected role in mass adoption of the cryptos. The increased inflow of capital from banking, financial and investment sectors will also increase the overall price of bitcoin. This means bitcoin can cross its previous high of $20,000 by the time next year ends.
Though the volatility and uncertainty associated with bitcoin makes it unsuitable as a replacement for traditional monetary framework, this could also mean that an unexpected increase in bitcoin’s price is quite possible. This all the more true bitcoin has only a small market capitalization of less than a $100 billion as compared to big traditional financial institutions.
With things seemingly set for a bull-run in 2019 and 2020, as per various predictions, it will be interesting to see how things pan out in terms of bitcoin’s price.